Power Banks Soar 34%: Inside the Struggles of Vietnam's Platform Workers Amid Rising Costs and Climate Challenges - Nov 2024
Vietnam is the land of motorbikes, fast deliveries through congested cities and, since 2014, gig work.
Local platforms such as BeFood and multinationals (Grab, ShopeeFood) compete for market share and have become the lifeblood of major cities. This is particularly true in the capital, Ho Chi Minh City, which is the heart of Vietnam's platform economy.
Looking at the core of the platform economy, the workers, the Vietnamese share some of the challenges reported by the global workforce in other parts of the world: their status as independent contractors makes them vulnerable to economic and social shifts, and the regulatory framework hasn't kept pace with the growth of the platform economy.
However, there are some specificities: policymakers have sought to address the lack of clarity around the status of platform workers, and in 2019 reformed the Labour Law to better regulate the emerging working relationships between platforms and workers. Article 13(1) of the 2019 Labour Law states that if an agreement does not qualify as an 'employment contract', 'but ... has content relating to paid work, wages, and the management, direction [and] supervision of a party, it shall be considered an employment contract'. The implementation of this provision remains uncertain. Meanwhile, platforms continue to classify their workers as business partners or independent contractors, placing the bulk of risks and liabilities squarely on their shoulders.
The risks associated with climate change have also hit Vietnam's platform workers fiercely: record high temperatures and frequent flooding have made their work increasingly dangerous. While platforms like Uber and Grab contribute to environmental degradation through road congestion and emissions, workers are on the front lines of extreme weather, enduring long shifts, waiting at street corners and restaurants for orders, and navigating hazardous roads and traffic in the midst of heatwaves and storms. Platforms such as Grab have been shown to offer 'weather fees', but many agree that better protections are needed.
In this context, the cost of living remains a key concern for Vietnamese, along with job security - two issues that particularly affect platform workers. Their status as independent contractors and the significant lack of legislation defining their labour rights make them vulnerable to economic and social change.
The quarterly WageIndicator data collection shows that the prices of work-related items for app-based workers in Vietnam have generally fallen compared to 2023, with the exception of power banks and internet data plans, bicycles (both standard and electric), and clothing. In particular, power banks have risen sharply by 34%, and various items of clothing, from t-shirts to trousers and jackets, have increased in price by up to 13%.
Despite the fact that the reported earnings of platform workers are sometimes higher than those of their counterparts in the traditional labour market, the perceived benefits of platform work are generally speculative rather than evidence-based. In fact, drivers' autonomy and flexibility have been significantly reduced due to their economic dependence on platform work and the algorithmic and traditional controls exercised by platform companies. Full-time drivers in Ho Chi Minh City earn an average of VND9.3 million (around USD409) per month, which is low compared to the living wage requirement. Drivers work an average of 11 hours a day, 28 days a month, far exceeding Vietnam's legal overtime limits. Platform workers are not entitled to any form of paid leave or social security. Not only are their incomes low, but they are also highly vulnerable to frequent adjustments in service fees, deductions and bonus formulas due to platform economics and changing market conditions. Typically, ride-hailing drivers have to work excessive hours and are exposed to high occupational health and safety risks, with limited support from their companies.
There have been some tentative steps to give workers fairer working conditions in the form of local platforms not taking commissions, but the market is still dominated by delivery giants like Grab, BeFood, and ShopeeFood.
Also, because platform workers are not classified as employees, they cannot join a union. This further restricts their ability to take collective action, and only some local, bottom-up initiatives provide some relief.
Look at more countries:
🇪🇺 The Jacket Dilemma, and Other Essential Costs Facing European Platform Workers - Oct 2024
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🇲🇽 The costs of being a gig worker in Mexico: a battle with rising costs - Spanish version - Aug 2024
🇨🇴 The cost of being a gig worker in Colombia: fuel and vehicle-related costs affect drivers and riders the most - Spanish version - Jul 2024
🇧🇷 The cost of being a gig worker in Brazil: surging prices on laptops, car insurance, and bicycles - Jul 2024
🇳🇱 Rising Costs of Essential Items for Gig Workers in the Netherlands - Jun 2024
